Zhuo (Joe) Zhong

Assistant Professor (Senior Lecturer in Australia)

Department of Finance, Faculty of Business & Economics

The University of Melbourne

Email: zhuo.zhong@unimelb.edu.au

Curriculum Vitae


Education

Ph.D. in Economics, Cornell University

M.A. in Finance, Singapore Management University & Xiamen University

B.A. in Economics, Xiamen University


Research Interests

Market Microstructure; Asset Pricing; Big Data; Network Economics

Publications

1. "Pre-trade transparency in over-the-counter markets," with Fan Chen, Pacific-Basin Finance Journal, 2017, 45: 14-33.

(Empirical) Bonds that are able to trade on the NYSE (where pre-trade information is available) have smaller transaction costs than those cannot.

  • Best Paper Award of the 5th Behavioral Finance and Capital Markets Conference
  • BFCM 2015
  • CICF 2012

2. "Reducing opacity in over-the-counter markets," Journal of Financial Markets, 2016, 27: 1-27.

(Theory) A competitive centralized market incentivizes dealers in OTC markets to reduce opacity, whereas a non-competitive centralized market does the opposite.

  • 8th Annual Central Bank Workshop on Microstructure of the Financial Market

Working Papers

1. "Innovation and informed trading: Evidence from industry ETFs," with Shiyang Huang and Maureen O'Hara

(Empirical) Industry exchange traded funds (ETFs) encourage informed trading on underlying firms through facilitating the hedge of industry-specific risks.

  • AFA 2019 (scheduled)
  • LSE Paul Woolley Center Conference 2018 (scheduled), CICF 2018 (scheduled), UW Summer Finance Conference in Seattle 2018 (scheduled)

2. "Inverted fee venues and market quality," with Carole Comerton-Forde and Vincent Grégoire

(Empirical) Offering traders sub-tick price improvement, inverted fee venues enhance competition for liquidity provision and increase information impounded into prices through limit orders.

  • NFA Best Paper Award on Market Microstructure
  • AFA 2018
  • NFA 2017, FIRN 2017

3. "The risk sharing benefit versus the collateral cost: The formation of the inter-dealer network in over-the-counter trading"

(Theory) Dealers balance their risk-sharing benefits with collateral costs from trading to endogenously determine the inter-dealer trading network in OTC markets.

  • AFA 2016
  • WFA 2015, EFA 2015
  • NBER Market Microstructure Meeting 2014, FIRN 2014, Eastern Finance Associate Meeting 2014
  • FMA 2013

4. "Relative tick size and the trading environment," with Maureen O'Hara and Gideon Saar

(Empirical) In a one-tick spread environment, a larger relative tick size results in greater depth and more volume; in a multi-tick environment, the opposite outcome prevails.

  • WFA 2016, CICF 2016
  • CIFR 2015, Cambridge Workshop on Microstructure Theory and Application 2015